Jimmy John's vs Subway
Jimmy John's vs Subway: Jimmy John's costs $25K–$366K to open; Subway costs $263K–$630K. Jimmy John's has 2,689 units, Subway has 3,936. SBA loan history: Jimmy John's = 1,071 loans (4.3% default); Subway = 6,080 loans (5.5% default). The franchise with more SBA-funded units, lower default rate, and lower royalty load is the safer financing bet, see the comparison below.
Jimmy John's vs Subway: Capital, Scale & Lending Analysis
Data-driven differentiation pulled from FDD filings and SBA 7(a) loan-level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Jimmy John's requires the lower minimum capital commitment ($25K vs $263K for Subway), a 90% spread. Initial franchise fees come in at $35K for Jimmy John's versus $15K for Subway, Subway has the lower entry fee. Ongoing royalty load is 6% for Jimmy John's and 8% for Subway, giving Jimmy John's the lighter per-unit drag on operating income.
System Scale & Tenure
On scale, Subway operates 3,936 units to Jimmy John's's 2,689. Subway has been operating 61 years (founded 1965) versus 43 for Jimmy John's (founded 1983), a 18-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Subway has the deeper SBA lending track record with 6,080 historical 7(a) approvals versus 1,071 for Jimmy John's. Jimmy John's's peak SBA year was 2015 (127 loans); Subway's peak was 2003 (515 loans). Jimmy John's's more recent peak generally indicates fresher lender appetite. Geographically, Jimmy John's concentrates in IL (92 SBA-funded units) while Subway leads in CA (570). Pick the brand whose strongest state matches yours for warmest lender introductions. Average SBA loan size on funded Jimmy John's deals is $433K vs $195K for Subway, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 4.3% for Jimmy John's and 5.5% for Subway, Jimmy John's has the cleaner historical loss profile by 1.2 points. PeerSense FPI scores come in at 58 (Moderate) for Jimmy John's and 60 (Moderate) for Subway, giving Subway the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 58/100 | 60/100 |
Health Tier | Moderate | Moderate |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 1,071 | 6,080 |
SBA Volume | – | – |
Default Rate | 4.3% | 5.5% |
Peer Tier | major | major |
Investment & Costs
Total Investment | $25K – $366K | $263K – $630K |
Franchise Fee | $35K | $15K |
Royalty Rate | 6% | 8% |
Ad Fund | 4.5% | 4.5% |
Liquid Capital | N/A | $40K |
Net Worth Required | $1.0M | $310K |
Financial Performance (Item 19)
Item 19 Status | Disclosed | Not Disclosed |
System Size & Operations
Total Units | 2,689 | 3,936 |
Franchised Units | 2,647 | 3,936 |
Company-Owned | 42 | – |
Term Length | 10 yrs | 20 yrs |
Brand Information
Year Founded | 1983 | 1965 |
Franchising Since | 2017 | 1974 |
Years Franchising | 9 yrs | 52 yrs |
Headquarters | Atlanta, GA | Shelton, CT |
Category | Limited-Service Restaurants | Limited-Service Restaurants |
Website | ||
FDD Year | 2026 | 2026 |
Which Is Better, Jimmy John's or Subway?
Lower upfront capital required
Jimmy John's
Jimmy John's: $25K starting · Subway: $263K starting
More SBA lender confidence
Subway
Jimmy John's: 1,071 SBA loans · Subway: 6,080 SBA loans
Lower historical default rate
Jimmy John's
Jimmy John's: 4.3% · Subway: 5.5%
Larger system & brand presence
Subway
Jimmy John's: 2,689 units · Subway: 3,936 units
Lower ongoing royalty load
Jimmy John's
Jimmy John's: 6% · Subway: 8%
More lender financing options
Subway
Jimmy John's: 232 unique lenders · Subway: 831 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Jimmy John's vs Subway: Franchise Funding Comparison
Comparing Jimmy John's and Subway is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $25K to $630K.
Both brands have active SBA lending histories, Jimmy John's with 1,071 SBA loans and Subway with 6,080. This means proven lender acceptance and established underwriting paths for franchise buyers.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Jimmy John's vs Subway, Frequently Asked Questions
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